MVR 58 Million Allocated for Coastal Protection from Green Fund in September

The Maldives government allocated MVR 57.6 million from the Green Fund for coastal protection projects across four islands in September, according to the Green Fund report for the month, published last week.

The report also revealed that the government collected MVR 88.9 million as green tax during the same period.

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The majority of the green tax revenue, over MVR 80.7 million, was generated by resorts. Guesthouses contributed MVR 4.8 million, hotels MVR 2.1 million, and liveaboards and vessels MVR 1.3 million. Properties in the central atolls accounted for the largest share of collections, with Kaafu Atoll leading at MVR 31.4 million, followed by Raa Atoll at MVR 10.3 million.

Coastal protection projects were the primary focus of Green Fund expenditures in September. Of the MVR 57.6 million allocated, MVR 55 million was spent on initiatives in Sh. Milandhoo, Sh. Komandoo, N. Kudafari, and F. Nilandhoo. Notably, Sh. Komandoo received MVR 39 million. Smaller sums from the fund were used for waste management, energy, water supply, and sewage projects.

Cumulatively, the Green Fund has collected MVR 808 million in 2024, with total expenditures reaching MVR 325.6 million. As of September, the fund balance stood at MVR 1.65 billion, enabling continued investment in critical environmental initiatives.

Looking ahead, the Maldives is set to implement a significant increase in green tax rates starting in January 2025. Under the revised framework, resorts, integrated tourist resorts, resort hotels, and large guesthouses will charge USD 12 per guest per night, double the current rate of USD 6. Smaller guesthouses will see their rates rise to USD 6 per guest per night, up from USD 3.

The rate hike is expected to generate additional revenue for the Green Fund, enabling expanded investments in climate resilience initiatives, renewable energy infrastructure, and waste-to-energy projects. As a nation on the frontlines of climate change, these funds are seen as vital for achieving the Maldives’ long-term environmental objectives.